A.M. Best Reviews Ratings of Arden Reinsurance and Arden Holdings with Negative Implications [Professional Services Close – Up]

A.M. Best Co. has placed under review with negative implications the financial strength rating of A- (Excellent) and issuer credit rating (ICR) of "a-" of Arden Reinsurance Company (Arden Re) and the ICR of "bbb-" of the parent company, Arden Holdings (both domiciled in Bermuda).

According to a release, the rating actions follow the recent announcement that Arden Holdings has entered into a definitive agreement with Enstar Group Limited for the acquisition of Arden Re.

Enstar will purchase Arden Re for approximately $79.6 million. The transaction is anticipated to close by the end of the fourth quarter of 2013, subject to regulatory approval.

The ratings will remain under review pending the completion of the transaction and A.M. Best's review of the future business plan and capitalization of Arden Re.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides an explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process.

A.M. Best Company is an insurance rating and information source.

More information:

www.ambest.com

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